Investigate the Relationship Between Accounting Information and Credit Risk in Firms Listed on Tehran Stock Exchange

Credit and financial institutions to grant loans to individuals and legal applicant, faced with the problem of debt, which are referred to as a credit risk. Many studies to estimate credit risk and the credit rating were conducted in Iran and abroad. The purpose of this paper is to examine the predictive power of accounting information in assessing the credit risk, i.e. whether the source is accurate estimates of credit risk or not? The data from 137 companies among the firms listed in the Tehran Stock Exchange between 2009- 2014, and through the Codal and Irboursesite were collected. Independent variables liquidity ratios, profitability, cash flow, performance, financial leverage, firm size and the dependent variable is the credit spread. The results showed that the accounting information, high power to predict the fluctuations in credit expansion and financial leverage ratios, size and performance are a significant relationship with the volatility of credit spreads.